Baby products marketplace Rebelstork raises $26m
Rebelstork, a Toronto-based startup, has secured US$18 million ($26 million) in funding to expand its online marketplace for discounted baby gear. The company aims to address the growing issue of merchandise returns in the e-commerce sector, particularly focusing on baby products.
Transaction snapshot
Deal value: US$18 million ($26 million)
Deal multiples: N/A
Deal type: Series A
Investors: Maveron (lead), Serena Ventures, Marcy Venture Partners, Golden Ventures
Rebelstork's online platform sells overstock and returned baby items at discounted prices. The company has developed technology to streamline the flow of returned merchandise from brands and retailers to its warehouses. It also uses a tagging system to provide brands with visibility into their products' journey.
Founded four years ago, Rebelstork works with major retailers like Target and brands such as BabyBjörn. The company reports a 300% year-on-year growth in its business.
Emily Hosie, founder and CEO of Rebelstork, brings experience from the off-price retail sector, having previously worked as a merchandising executive at TJ Maxx and Marshalls' parent company, as well as Saks OFF 5th.
The startup aims to solve logistical and operational challenges faced by brands and retailers in handling returned baby goods. Many companies lack the resources or expertise to manage quality checks for reselling merchandise, while others prefer not to mix discounted items with full-priced goods on their shelves.
According to the National Retail Federation, merchandise returns totalled US$743 billion ($1.07 trillion) last year, with baby gear accounting for nearly US$16 billion ($23.1 billion) of that figure, as reported by Rebelstork.
The company's process involves receiving returned goods at one of its four North American warehouses, tagging and quality-checking items, and using AI-powered tools for pricing before listing products on its website. Rebelstork offers discounts of up to 50% on popular baby brands across 45 categories.
The Series A funding round was led by Maveron, with participation from Serena Ventures, Marcy Venture Partners, and existing investor Golden Ventures. The investment values Rebelstork at US$60 million ($86.7 million) post-money, according to an unnamed source familiar with the deal.
Hosie believes Rebelstork benefits from a generational shift, with millennials and Gen Z showing increased willingness to purchase pre-owned merchandise when quality and price align with their expectations.
